Hydrobuck is a medium-sized producer of gasoline-powered outboard motors. In the

Question

Hydrobuck is a medium-sized producer of gasoline-powered outboard motors. In the past it has successfully manufactured and marketed motors in the 3-to-40- horsepower range. Executives at Hyrdobuck and now interested in larger motors and would eventually like to produce motors in the 50-to 150- horsepower range. The internal workings of the large motors are quite similar to those of the smaller motors. However, large, high-performance outboard motors require power trim. Power trim is simply a hydraulic system that serves to tilt the outboard motor up or down on the boat transom. Hyrdobuck cannot successfully market the larger outboard motors without designing a power trim system to complement the motor. The company is financially secure and is the leading producer of small outboard motors. Management has decided that the following objectives need to be met within the next two years: Design a quality power trim system. Design and build the equipment to produce such a system efficiently. Develop the operations needed to install the system on the outboard motor. The technology, facilities, and marketing skills necessary to produce and sell the large motors already exist within the company. What alternative types of project organization would suit the development of the power trim system? Which organization type would be best? Discuss your reasons for selecting this type of configuration.

Explanation / Answer

Following alternative type project organizations would suit the development of power trim system

1.     Pure project organization – pure project organization has a separate project manager and a project team for every project. The project team is cross-functional, with people from R&D, Systems, Manufacturing, Design, Operations. Pure project organization has a project authority, expertise and focus. Project managers have total authority.

2.     Matrix organization – Matrix organizations have departments of functional expertise. People with similar expertise belong to one department. They are assigned to various projects on need basis. Different Project managers share responsibility

3.     Program-based organization – traditional structure in which project managers have authority only within the program area.

For power trim system, pure project organization would be the best, because it requires focus, expertise and authority to execute the projects successfully.

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